The Aggregate Demand Curve Differs from an Individual Demand Curve

question 268

Multiple Choice

The aggregate demand curve differs from an individual demand curve in that

• A) the aggregate demand curve may not slope down while an individual demand curve must always slope down.
• B) the aggregate demand curve looks at the entire circular flow of income and product, while an individual demand curve looks at one good, holding everything else constant.
• C) prices change along an individual demand curve but prices are held constant along an aggregate demand curve.
• D) the aggregate demand curve slopes up while an individual demand curve slopes down.

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Definitions:

Situational Constraints

External factors that limit or influence an individual's ability to perform a task or achieve a goal.

Personality Traits

Enduring patterns of thought, feeling, and behavior that characterize an individual across different situations and over time.

External Influences

Factors originating outside an individual that significantly affect their behaviors, decisions, and attitudes.

Implicit

Something implied or understood though not directly expressed.